Housing New Zealand has been told it must find savings from within its existing budget, to fund the construction of new state houses.
Last week's Budget contained no new money for building state houses.
But Housing Minister Phil Heatley says the agency received a significant amount of money for upgrades and new building in last year's economic stimulus package.
Mr Heatley says Housing New Zealand has been told to find savings and use that money to build the new houses required by the Government, under its set target.
However, Greens co-leader Metiria Turei says the proof will be in the number of new constructions in coming years.